Chicago Riverwalk

investment memorandum
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 Table of Contents
Investment Opportunity 5.

Chicago Overview 9.

Guiding Principles 31.

Development Opportunities 37.

Structure Overview 55.

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 Investment Opportunity

The City of Chicago (“City”) is pleased to offer

an exciting investment opportunity available
in the downtown Chicago submarket. The
City advances a commercial development,
operations, and management opportunity for
partnership on the Chicago Riverwalk.

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 Investment Opportunity
The information enclosed provides some of the
details necessary for you and/or your partners to
put forth a proposal to respond to the Request
for Proposals (“RFP”) issued by the City of
Chicago on August 6, 2014, Bid Specification
number 126330, Requisition number 92533.
This Investment Memorandum, which contains
brief, select information pertaining to the
business and affairs of the Property, has been
prepared by the City of Chicago in collaboration
with World Business Chicago (“WBC”). This
Investment Memorandum does not purport to be
all-inclusive or to contain all of the information
a prospective partner may desire. Neither
the City nor WBC, nor any of their officers,
employees, or agents makes any representation
or warranty, express or implied, as to the
accuracy or completeness of the Investment
Memorandum or any of its contents and no
legal liability is assumed or shall be implied with
respect thereto. The City expressly reserves
the right, at its sole discretion; to reject any or
all expressions of interest or offers to partner
Request for Proposals
on the Chicago Riverwalk unless and until a
contract has been fully executed and delivered.
The structure of the Partnership identified in
the RFP issued is that Partners may propose a
management agreement or a long term lease
with an upfront payment so as to meet the City’s
project finance requirements. Respondents may
propose an alternative structure that meets the
project finance requirements of the Riverwalk.
The Partner is responsible for the development
of the commercial retail on the Riverwalk,
the programming of the Riverwalk, and the
operations and maintenance of the entire
Riverwalk.
This Investment Memorandum shall not be
deemed to represent the state of affairs of the
Property or constitute an indication that there
has been no change in the state of affairs of
the Property since the date the Investment
Memorandum was prepared.
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Investment Opportunity
Chicago Riverwalk Investment Highlights

• Potential to be a top
entertainment and
recreation destination
for residents and tourists
alike

• Opportunity to partner on
a World-Class mixed use
asset

• Option to develop
commercial retail in a
high barrier to entry
market; Over 100,000 SF
of potential developable
space including vertical
construction

• Potential to drive roughly

$3 billion dollars in net
new spending in the
Chicago economy over 35
years

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Photo cc Chris Smith on Flickr
 Chicago Overview
Chicago has one of the world's largest and
most diversified economies, with more than
four million employees and generating an
annual gross regional product (GRP) of over
$500 billion. The City is an efficient economic
powerhouse that is home to more than 400
major corporate headquarters, including 31
Fortune 500 headquarters.

Centrally located and with a population of

9.5 million people and 4.4 million employees,
Chicago is home to an unrivaled workforce,
economy, and quality of life. The Economist
Intelligence Unit ranked Chicago among the
world’s top 10 most competitive cities for
business.

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 Chicago Overview
The Population

Largest Centralized Metro in the U.S.

with Abundant Talent Pipeline in One of
the World’s Largest Economies
Chicago is the heart of
City of Chicago a major metropolitan

2,718,782
area comprised of:

• 9.5 million residents, a

Total Chicago MSA Population
growth of 4% (+380,000
people) since 2000
• Over $500 billion annual
gross regional product
• 4.4 million employees
The Chicago's city center is
home to 2.7 million residents
and 1.2 million employees,
a significant number of
whom are young and college

9,537,289
educated – a major selling
point for companies looking to
attract the best and brightest
in the region.

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Chicago Overview
The Economy

$531B Economy Rivals Nations

• #1 Metro for New &

Expanding Companies –
Site Selection magazine,
2014
20
• Among the top 10 Cities
of Opportunity –PwC, SWITZERLAND 23
$632 NORWAY
2014
18 $500
• Among the top 10 Global
Cities of today –A.T.
NETHERLANDS
$772 22 8
SWEDEN
Kearney, 2014
11 6 $526
24
RUSSIA
$2,015
• Among the top 10 global CANADA U.K.
15
21
POLAND
business hotspots of
KOREA
$1,821
5 $2,435
4 $490
2025 –The Economist FRANCE
Intelligence Unit, 2013
2
$1,130
1 CHICAGO $2,613 GERMANY

CHINA
3 UNITED STATES
$531 13
$3,400
17
$8,358
JAPAN
$5,960
$15,685
SPAIN
9 TURKEY
$789 10
14 $1,349 ITALY
$2,013 INDIA
MEXICO $1,842
16 $1,178
25 19
INDONESIA
$878 7 BELGIUM
SAUDI ARABIA
$711
BRAZIL $484
12 $2,253
AUSTRALIA
$1,521

12 Source: World Bank (2012), Moody’s Analytics (2012), WBC (9/23/13)

 Chicago Overview
Key Industries

Ranked Top 5 among 350+ metro areas nationwide for Gross

Regional Product (GRP)/ Output in:
• Business & Professional Services: 736,600 employees;
$85 billion GRP
• Financial Services: 287,100 employees; $123 billion GRP
• Manufacturing: 413,800 employees; $68 billion GRP
• Transportation & Warehousing: 184,000 employees; $19
billion GRP
• Health Services: 527,500 employees; $36 billion GRP

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Photo cc Chris Smith on Flickr
Chicago Overview
Access to the Country’s Brightest Minds

Tremendous Talent Pipeline

• The Chicago Loop is “the largest

college town in Illinois,” with more
than 65,000 students
• More than 145,000 college
degrees conferred every year by
nearly 150 Chicago area colleges
and universities, including 25,000
bachelor’s degrees, 18,000 masters
degrees, and 4,000 doctoral degrees
in the city alone
• Home to Kellogg School of
Management at Northwestern
University and The University of
Chicago Booth School of Business,
two of the top graduate business
schools in the world
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Photo cc Simon Goncalves on Flickr
 Chicago Overview
Accessibility

Best-Connected Airport in the U.S.

Only “dual-hub” airport system in North America –

handling 1,400+ daily departures and 90 million
passengers annually

Non-stop service to more

than 200 domestic and
international destinations

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Source: Innovata (April 2014), Chicago Department of Aviation (2014), WBC (4/4/14)
Chicago Overview
The Economy

Cost of Living = Best Value City

New York (Manhattan) 220

San Francisco 162

Washington, D.C. 140

Boston 140

Los Angeles 130

Philadelphia 121

Chicago 115

Miami 108

U.S. Average 100

Houston 99

Dallas 96

Detroit 96
Source: C2ER Cost of Living Index (2013), WBC (6/4/14)
Atlanta 95

16 0 50 100 150 200 250

 Chicago Tourism
A Snapshot

Mag Mile!
Navy Pier!

• 48.4 million visitors in 2013, up

from 39.3 million in 2010

r w a lk !
e
go Riv
• 55.0 million visitors by 2020
Chica
• TripAdvisor Users Rank
Chicago #2 for Top U.S.
Destination after NYC

• 85% May 2014 Hotel

Occupancy

• $227.59 Average Hotel Rate

• The George Lucas Museum of

Millennium Park! Narrative Art will call Chicago
home

• The City of Chicago issued

an RFP for the Concept
Design for a city-wide lighting
framework plan in May which
will incorporate the River
Union Station!

Photo Courtesy of Gensler 17

The dots in the image represent the quantity of photos taken by tourists. Buckingham Fountain!
History of the River
Chicago’s phenomenal growth into a major
urban center is due, in large part, to its strategic
location on the Chicago River and Lake
Michigan. As early as the 1600’s the river and
the lake were major trade routes. By the City’s
incorporation in 1837, the river had already been
established as a desirable location for industrial
development.
The first meat packing plant adjacent to the river
opened in 1829 and the first lumber mill in 1833.
These two industries were located just north
of Wolf Point at the confluence of the north
and south branches of the Chicago River. The
completion of the Illinois and Michigan Canal in
1848 linked Lake Michigan with the Mississippi
River, dramatically increasing river traffic. By
the 1860’s, the river had become the focus of
industrial development with an emphasis on
meat packing and lumber.
In the city’s early history the river was also
used as a sewage outlet. Waste flowed east
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to Lake Michigan, the city’s drinking water
source, resulting in frequent outbreaks of water-
borne diseases. In the 1890s, work began on
the Sanitary and Ship Canal to protect the
water supply and to provide greater shipping
capacity. The construction of the Canal and
its locks reversed the flow of the river, sending
pollution away from Lake Michigan and into the
Mississippi River system.
The Sanitary and Ship Canal also became
the main materials transportation artery,
replacing the obsolete Illinois and Michigan
Canal which was eventually filled in. Chicago’s
industrial legacy will likely remain a strong
feature of development along the Chicago
River, particularly along the South Branch
and the Sanitary and Ship Canal. However,
public demand for access and recreational
amenities continues to grow, ensuring that
future development will include a diverse mix
of industrial, commercial, residential, and
recreational uses.
 Riverwalk Infrastructure Plan
The Chicago Riverwalk extension (the Project) is
part of the larger Wacker Drive Reconstruction
Project. Wacker Drive is a multi-level major
thoroughfare through downtown Chicago (the
City) that runs adjacent to the Chicago River
from Lake Shore Drive to the Eisenhower
Expressway.
The Wacker Drive Reconstruction Project,
consists of 3 phases, East-West, North-
South, and the Riverwalk. The intention of the
Riverwalk Project was to complement the new
roadway and bring residents and visitors down
to the river level. Portions of the Riverwalk,
including East of Michigan were completed in
the 90’s. The Vietnam Memorial was dedicated
in 2005.
The original Phase I portion of the Riverwalk
was completed in 2009 and runs west from
Michigan Avenue to the east side of the State
Street Bridge. This segment includes the
Photo cc Simon Lutman on Flickr
Vietnam Veteran’s Memorial as well as a limited
number of restaurants and vendors.
The Riverwalk Extension, known as Riverwalk
Phases II and III, is underway and is planned
for a six-block section of Lower Wacker Drive
along the southern bank of the Chicago River,
running west from State Street and curving
south to Lake Street. The project is envisioned
as an alternative pedestrian pathway that will
include recreational, educational, retail and
restaurant opportunities. Currently, there is not a
continuous walkway along the river.
Through Federal assistance by the
Transportation Infrastructure Finance
Innovation Act (TIFIA), the City has invested in
infrastructure build-out of the marine sea wall
and public amenities and seeks a commercial
development partner for the commercial
component of the Riverwalk.
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Riverwalk Location & Map

O'Hare International Airport

The Chicago Riverwalk is situated between the Chicago Loop to

the south and its River North, Magnificent Mile, and Streeterville
LAKE MICHIGAN neighborhoods to its north.

Midway International Airport

LAKE MICHIGAN
CHICAGO RIVER

WACKER DR

COLUMBUS DRIVE
MICHIGAN AVE
DEARBORN ST

WABASH AVE
LASALLE ST
FRANKLIN ST

CLARK ST
WELLS ST

STATE ST

LAKE ST

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